Biden's tax plan would 'substantially' increase burden on wealthiest Americans
Wealthiest Americans could pay up to $1.8 million more in federal taxes
Former Vice President Joe Biden’s tax proposals stand to significantly increase burdens on the wealthy.
According to a new analysis of Biden’s tax proposals by the nonpartisan Tax Policy Center, the top 1 percent of Americans would lose 17 percent of after-tax income, or around $299,000 a year. The top tenth of the top 1 percent would pay an average of $1.8 million a year more in taxes.
Biden’s plans would increase taxes on all income groups, but higher-income households would shoulder a larger share of those tax increases in terms of both dollar amounts and as a share of their incomes.
For comparison, the average middle-class family, those with incomes between $52,000 and $93,000, would owe an additional $260. Taxpayers with lesser incomes would owe only about $30 extra.
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Overall, his proposals would raise revenues by $4 trillion over the course of a decade, which is more than the $3.2 trillion his campaign had predicted. About half of the gain would come from increased taxes on the wealthy and half would come from increased taxes on businesses.
Some of the revenue would be offset by $270 billion in additional tax credits. The effects of his spending proposals were not taken into account.
A separate analysis of Biden’s plan by the University of Pennsylvania's Wharton School Budget Model found that the plan would generate a maximum of $2.6 trillion in revenue.
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Biden’s proposals aim to raise both income and payroll taxes on the wealthy, including rolling back reductions implemented as part of the Tax Cuts and Jobs Act for people who make more than $400,000.
Capital gains would be taxed at the same rates as ordinary income for anyone earning more than $1 million. Unrealized capital gains would also be taxed at death.
While the 2017 tax reform law lowered the corporate tax rate to 21 percent, Biden would raise it to 28 percent.
Massachusetts Sen. Elizabeth Warren withdrew from the race on Thursday, which is broadly viewed as creating a contest between the more-moderate Biden and progressive-leaning Independent Vermont Sen. Bernie Sanders.